MKAT INDUSTRIES LTD

Executive Summary

MKAT INDUSTRIES LTD, a recently incorporated micro-entity in IT consultancy, shows significant financial vulnerability due to zero shareholders' funds and lack of employees or operational scale. While compliant with filing obligations, limited financial disclosures and absence of business activity indicators suggest elevated solvency and liquidity risks. Further investigation into funding and operational plans is essential before considering investment.

MKAT INDUSTRIES LTD - Analysis Report

Company Number: 14114136

Analysis Date: 2025-07-20 16:49 UTC

1. Risk Rating: HIGH
   Justification: The company shows no shareholders' funds or net assets, no employees, and minimal financial data due to micro-entity status. These factors combined with its recent incorporation and lack of operational scale significantly elevate solvency and liquidity risk.

2. Key Concerns:

• Zero Shareholders’ Funds: The balance sheet reports zero equity capital, indicating no financial buffer to absorb losses or fund operations.
• No Employees or Operational Scale: The absence of employees and operational data raises concerns about the company’s ability to generate revenue or sustain business activities.
• Limited Financial Disclosure: Micro-entity accounts provide minimal financial information, preventing comprehensive assessment of assets, liabilities, or cash flows, thus masking potential liquidity or solvency problems.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are filed on time, indicating adherence to statutory obligations and no immediate regulatory compliance issues.
• Active Status and Clear Ownership: The company is active with two directors who are also significant shareholders, suggesting clear governance structure and control.

4. Due Diligence Notes:

• Investigate Source of Initial Capital and Funding Plans: Given the zero equity base, ascertain how operations are financed and whether further capital injections are planned or required.
• Review Contractual Obligations and Debts: Without detailed financials, clarify any outstanding liabilities that could threaten solvency.
• Validate Business Model and Revenue Generation: Confirm whether the company is trading, has contracts, or is in a pre-operational phase to assess sustainability.